Dual pricing is a practice of selling identical pre-packaged commodities at the different MRPs by manufacturer/importer/packer. This is done because of many benefits such as generating profit from foreigners and customers who are unaware of the market prices.
Similarly, some companies charge higher prices of packaged commodities in some locations such as malls, airports, hotels, tourist places, etc. Also, different prices are charged for the same product based on factors such as location and other complex factors.
For instance, bottled water is sold for Rs. 20 at the local shops or railway stations, but the same bottle will cost you Rs. 200 in a five-star hotel. This is a concept of dual pricing. To stop such practices, the government banned dual pricing.
The Legal Metrology Act does not support dual pricing of the commodities. It only deals with standards of weights and measures and goods sold/distributed by weight and measure as evident on a perusal of the preamble and the object of the Act.
The government has prohibited the Maximum Retail Price (MRP) for the same product in multiplexes, airports and malls. The Ministry of Consumer Affairs and Food and Public Distribution amended the Legal Metrology (Packaged Commodities) Rules, 2011.
It is banned because every customer has a right to be treated fairly and transparently. This pricing was raising ethical concerns, as it involves taking advantage of differences in purchasing power or can exploit unaware customers.
The Legal Metrology (Packaged Commodities) Amendment Rules, 2017, introduced Rule 18 (2A) into the LMA Rules, 2011, which provides that no manufacturer/packer/importer will follow the dual pricing rules.
Packaged products such as food, beverages, bottled water, etc, fall under Section 2(I) of the Legal Metrology Act, 2009 and must comply with Rule 6 of the Legal Metrology Rules, 2011. According to Rule 6, the following declarations must be mentioned on every package:
The Legal Metrology Act prohibited dual pricing under these regulations:
The Union Ministry of Consumer Affairs banned the practice of dual pricing. And, said that they will adopt a balanced approach in the pricing. However, the government ordered the manufacturers, importers, and packers to use the bigger font size of a declaration on the packages. So, the consumer can easily read the details and other instructions.
If you are a manufacturer, importer or packer, then you require a Legal Metrology Certificate to carry to business operations. Reach out to Registrationwala, to get the license, we assist you in the application process. As obtained, a license is a must to avoid the legal consequences.
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